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Tracked by: 0 Boarder
oh supreet34
The case sounds good but why stopped at 15000 , why not more higher target like 150000. 1:30 probability... Think about it?
It seems like money is growing on the trees apart from usual SUCKing of Free Public money. lol
Gud luk & happy investing! :)...
In reply to:
NIFTY-5160 TO 3600 TO 9000 BY 2014
Posted by :
supreet34
The Case for Bulls!
What is worst case for Bulls is Nifty can go down to 0? i erisk of 5500 points! Look up onecan see 15000(Malayali target)so the risk to reward ratio is in favour of bulls with 1: 3!
Come to think of it with all ur positive energy! It is possible! Probability of NIFTY going down to 0 is zero! Where as probability of going up to 15000 is still something!!
Think over it Bears! 
Tracked by: 126 Boarders
Aha Togu
BS rules of the BS GAME are simple!
Be UNEMOTIONAL with your trades . Control that GREED and FEAR! :) Rest always keep in mind that GAME is all about Money!
In the meanwhile, read a short overview about famous legendary Turtle System, that may give some idea! :)
***
Most successful traders use a mechanical trading system. This is no coincidence. A good mechanical trading system automates the entire process of trading.
The system provides answers for each of the decisions a trader must make while trading. The system makes it easier for a trader to trade consistently because there are a set of rules which specifically define what should be done. The mechanics of trading is not left up to the judgment of the trader.
If you know that your system makes money over the long run it is easier to take the signals and trade according to the system during periods of losses. If you are relying on your own judgment during trading you may find that you are fearful just when you should be bold and courageous when you should be cautious.
If you have a mechanical trading system that works, and you follow it rigorously your trading will be consistent despite the inner emotional struggles that might come from a long series of losses, or a large profit.
The confidence, consistency, and discipline that a thoroughly tested mechanical system affords is the key to many of the most profitable traders’ success.
The Turtle Trading System was a Complete Trading System. Its rules covered every aspect of trading leaving no decisions to the subjective whims of the trader. It had every component of a Complete Trading System.
****
Once trade set up happen, just stick to that.
Trying to gain 15 points daily is NOT possible, however trying to gain 500 points during BUBBLE time is possible! :)
Look at the charts:
From 20th October to Nov 5,
From 6 Nov to 18 Nov,
From 18 Nov to 20 Nov,
From 20 Nov to current!
Most ppl unnecessary make them COMPLEX by losing easy Free Points... be that Diwali to Diwali offer or current Diwali to x-mas offer! :)
TA is a lovely toy. Game is all about
money. Rest all are BS stories.
Gud luk & happy investing! :)...
In reply to:
15 point Strategy : Worth investing: Richestuser
Posted by :
togu
Dear Patience, SNVaishji, DM, Ashtrix and Supree34 - Yesterday my daughter saw me updating my Nifty future charts - She asked me what i was doing and i explained to her that the chart in brief & showed her daily movement & my desire to profit from the movement - she asked me what is the daily movement of nifty and i told her minimum of 50 pts and average of 107 pts ( i took average of the nifty movement of last 20 months) - FINALLY SHE ASKED ME WHY CAN I NOT GET 15 POINTS DAILY IF NIFTY MOVES 50 PTS EVERYDAY ????? - She told my Mom that she cannot understand why Papa finds it DIFFICULT TO DO SOMETHING SO EASY !!!!! - I was stunned, embarassed and at loss of words but what my daughter says is true - Any ideas ???? Respectfully Togu
Tracked by: 0 Boarder
AMITBAI
appreciate your optimism
can you please tell me: what cox and kings going to do with this subscription.
what is their credit worthy fundamentals for the market to value.
WHAT IS THEIR ASSET IN THIS TRAVEL MARKET.
Is it good will
is it a business like reliance petroleum- which cannot be started over night and needs gestation period.
okay: cox and kings: what is their line of business- to my knowledge
1. Issuing tickets to various airlines
2. In bound tours
3. Out bound tours
Other than that do you have any thing in your mind- According to me NOTHING
This business: if you decide to start tomorrow: just one month.
You can get approved by IATA for issue of tickets. Due to online sales- now no big fuss.
In bound tours: There are many subagents for Nepal, gujarat and tamil nadu- I can book and delegate to specialists in respective areas
Out bound tours: there are many agents to take care of your booking in various countries and they will line up to serve
TRAVEL AND HOSPITALITY BUSINESS NEEDS NO BIG INFRA STRUCTURE AND ANY ONE WITH RUPEES TEN LAKH CAN START THEIR OWN AND THRIVE RATHER THAN WHITE ELEPHANTS LIKE COX AND KINGS DOING IT
...
In reply to:
COX & KINGS Lukewarm Response
Posted by : amitkbaid1008
Cox & Kings India Ltd. got lukewarm response atleast by Retail Investors. Overall subscription was moderate at above 6 times but Retail Investors who got their fingers burnt in all IPOs from ADANI POWER...NHPC...IBPOWER... and today`s DEN... given lukewarm response to CNK despite being with good fundamentals. I think that Retail Investor will have to regret.
As far as valuation for COX & KINGS are concerned though they dont left very much on the table for investors but still it seems that the investors will get some thing from it. There are mainly two listed companies in this space THOMAS COOK and INTERNATIONAL TRAVEL HOUSE. THOMAS COOK is trading at PE of 50.16 and ITH at 12.83 with average of 42.26 giving Fair Value of Rs. 421 and on Market Cap to Sales basis THOMAS COOK is trading at 4.80x and ITH at 1.23x with average being 4.04x thus giving Fair Value of Rs. 184.29 overall Fair Value comes to around 303 with is not at much discount from its issue price of Rs. 330 like others.
It may not give any immediate listing returns but will give good returns.
Tracked by: 126 Boarders
oh by the way
exited 40 lots at Rs 10/- rest will expire in losses...
In reply to:
15 point Strategy : Worth investing: Richestuser
Posted by : bubbu64
Dear patience and supreet34
How ru guys
I am back in Hyderabad for the Marathon on Sunday.
As I had expected yesterday just before the mkt ended NIFTY might , I repeat might head back to 5200 levels. And It did. I immediately put a order for 50 lots of NIFTY 5200 CALL at Rs 6/-. If I am not wrong NIFTY should touch 5250 before expiry.
Goodluck to u guys
bubbu64
Tracked by: 126 Boarders
True patience
Ur right which is why I had taken those 5200 calls. TO BE WASTED since I wanted to know which way the mkt was going to go. Now I know exactly know what to do. I hope ur trip is gng well.
Regards
bubbu64...
In reply to:
15 point Strategy : Worth investing: Richestuser
Posted by : patience
lol There ya go dear callnput, before i left for BBSR i told BUBBU dear to get rid of those 5200 calls as they will become worthless.
And you said your operators tell that expiry above 5200 and now target is 5050..lol
One more operator iguest at 4800 asked to exit longs at any cost as some bad news from DOW will crash DOW and instead we came up 200 points lol.
Fact is NO ONE KNOWS ANYTHING but love to speculate. lol
Regards
Patience...
Tracked by: 1 Boarder
Q: Do you think there could be another Bill Gates even at this school right now?
Gates: Sure. The opportunities as science creates new frontiers, new businesses are being formed today that are going to save lives and make our lives better and make billions of dollars. That’s why this system has actually been imitated by lots of other countries and that betters the world. So the US has set an example and it is still the best.
Q: Do you think the future innovators are going to come from this country, are they going to come from some other imitator countries?
Gates: That would be more of a mix. At the end of World War two, the US stood alone and since then other countries have been getting their act together and contributing to global prosperity. Every new drug that is invented, every great new piece of software is beneficial.
So the US would be the lead because our universities and our basic system is still the best. But others including China and India are coming along. They`ve fixed some of the mistakes they were making, pretty extreme in the case of China going back. So they will be contributing, buying goods and being part of the economy. They may even ship some goods off Burlington Northern.
Q: What is the important fix that China has made that has helped them along the way?
Gates: They have re-doubled the focus on education, their culture is always strong on that. But allowing there to be a market economy, letting people create businesses which before 1979 they didn’t allow at all, but then gradually they opened it up and now they are a capitalistic country.
Q: We are at the heart of capitalism here, at Columbia, New York City, we talked to about 50% of students who were here, eventually going into financial services, some sort of Wall Street type job. Is Wall Street going to be there for them after what we just went through the last year?
Buffett: Yes Wall Street will be there for them. But I don’t think it’s unfortunate that there are a number of them who want to go there. Wall Street is an integral part of the US economy and it shouldn’t be the center. The real things are encountered developing these businesses and all, but they need Wall Street....
In reply to:
Market News and Market Update
Posted by : hsnmf
US to face stimulus aftershocks: Warren Buffett
Published on Wed, Nov 25, 2009 at 21:11 | Updated at Wed, Nov 25, 2009 at 22:44 | Source : CNBC-TV18
The US economy should brace itself for the aftershocks of the unprecedented government stimulus, but the future of America and Wall Street is bright. That`s the word coming in from the Oracle of Omaha Warren Buffett and Microsoft Founder Bill Gates.
In a special interaction with CNBC at New York`s Columbia University, Buffett and Gates spoke about timing the exit from the loose money policy.
Here is a verbatim transcript of the excerpts from the interaction with Warren Buffett and Bill Gates. Also watch the accompanying video.
Buffett: We have done extraordinary things and applied extraordinary dosages of things that we have done in the past to pull this country out of the financial panic like virtually one that is ever seen.
The right thing to do in a general way but with unprecedented dosages you may get unprecedented after effects and they won`t necessarily be welcome after effects but they were still up to do with the right decision to apply that much medicine. But we can`t do what we are doing fiscally for a long period of time without having a real impact on inflation, on the dollar and a lot of unpleasant aftereffects.
Q: You just said last week when you bought Burlington Northern that this was a big bet on the future of America?
Buffett: Yes. And I have no doubt about the future of America. People like Bill have been able to come into this US economy and work miracles. And our system has allowed the potential of a Bill Gates to come out. Two hundred years ago. He would have been some dirt farmer or maybe a blacksmith or something. But we have a system that unleashes potential and it is going to keep going down but you can bet on the future of America with enormous confidence.
Tracked by: 1 Boarder
US to face stimulus aftershocks: Warren Buffett
Published on Wed, Nov 25, 2009 at 21:11 | Updated at Wed, Nov 25, 2009 at 22:44 | Source : CNBC-TV18
The US economy should brace itself for the aftershocks of the unprecedented government stimulus, but the future of America and Wall Street is bright. That`s the word coming in from the Oracle of Omaha Warren Buffett and Microsoft Founder Bill Gates.
In a special interaction with CNBC at New York`s Columbia University, Buffett and Gates spoke about timing the exit from the loose money policy.
Here is a verbatim transcript of the excerpts from the interaction with Warren Buffett and Bill Gates. Also watch the accompanying video.
Buffett: We have done extraordinary things and applied extraordinary dosages of things that we have done in the past to pull this country out of the financial panic like virtually one that is ever seen.
The right thing to do in a general way but with unprecedented dosages you may get unprecedented after effects and they won`t necessarily be welcome after effects but they were still up to do with the right decision to apply that much medicine. But we can`t do what we are doing fiscally for a long period of time without having a real impact on inflation, on the dollar and a lot of unpleasant aftereffects.
Q: You just said last week when you bought Burlington Northern that this was a big bet on the future of America?
Buffett: Yes. And I have no doubt about the future of America. People like Bill have been able to come into this US economy and work miracles. And our system has allowed the potential of a Bill Gates to come out. Two hundred years ago. He would have been some dirt farmer or maybe a blacksmith or something. But we have a system that unleashes potential and it is going to keep going down but you can bet on the future of America with enormous confidence.
...
In reply to:
Market News and Market Update
Posted by : hsnmf
And the number of plays which are attractive, from a short-term perspective, beta is hard to play from these levels. In terms of alpha we are looking at a few stocks which have underperformed in the recent rally particularly the likes of Pantaloon, On Mobile, Patni Computers although hasn’t underperformed it is still trading at a significant discount to the rest of the sector, there is Edelweiss of the brokerage lot again with a discount and has underperformed.
So, these are the few stocks which we think you can play, which are backed by good management teams and one can play in the interim when it is going to be a tricky market play.
Q: You are a longer-term investor- how are you positioning yourself, are you building cash levels as the market rises higher even from these levels?
Kumar: As of now, we believe that the liquidity environment is likely to be very benign so long as the data points that are coming from the US economy remains mixed. In this context what we are doing right now is maintaining really low liquidity levels because the environment remains benign.
At the same time we are actually remaining invested in businesses where we see visibility of sustained earnings growth and where in the event of any liquidity withdrawal, the fundamentals of those sectors would remain intact.
Also what we are doing is we are positioning ourselves much more decisively in the domestic plays rather than the export oriented plays. With these two strategies in mind, we are actually positioning our portfolios.
Q: One concrete indicator of the market exuberance has been the entire foreign institutional investors (FII) flow picture and we are seeing that the interest has dipped a bit. Is that little bit of a concern for you?
Gubbi: No I do not think so. Like I said earlier on this show, there are still a whole host of funds with cash to be invested. One school of thought says that perhaps some of these funds have underperformed the market in this rally and feeling the pressure, they would like to come in but they perhaps would wait for a small 10-15% correction before they can play catch-up.
But at the same time you could be looking at funds who could be looking to take profits before the end of Christmas and that could put pressure on the markets.
Otherwise, longer-term picture, we think FII flows shouldn’t be a concern as long as US monetary policy and most of the Western central banks remains loose. The unemployment factor being the biggest driver there despite growth showing up, we think central banks will remain cautious in terms of tightening policy. So, that should keep the liquidity environment free as of now and FII flows should continue.
Tracked by: 1 Boarder
And the number of plays which are attractive, from a short-term perspective, beta is hard to play from these levels. In terms of alpha we are looking at a few stocks which have underperformed in the recent rally particularly the likes of Pantaloon, On Mobile, Patni Computers although hasn’t underperformed it is still trading at a significant discount to the rest of the sector, there is Edelweiss of the brokerage lot again with a discount and has underperformed.
So, these are the few stocks which we think you can play, which are backed by good management teams and one can play in the interim when it is going to be a tricky market play.
Q: You are a longer-term investor- how are you positioning yourself, are you building cash levels as the market rises higher even from these levels?
Kumar: As of now, we believe that the liquidity environment is likely to be very benign so long as the data points that are coming from the US economy remains mixed. In this context what we are doing right now is maintaining really low liquidity levels because the environment remains benign.
At the same time we are actually remaining invested in businesses where we see visibility of sustained earnings growth and where in the event of any liquidity withdrawal, the fundamentals of those sectors would remain intact.
Also what we are doing is we are positioning ourselves much more decisively in the domestic plays rather than the export oriented plays. With these two strategies in mind, we are actually positioning our portfolios.
Q: One concrete indicator of the market exuberance has been the entire foreign institutional investors (FII) flow picture and we are seeing that the interest has dipped a bit. Is that little bit of a concern for you?
Gubbi: No I do not think so. Like I said earlier on this show, there are still a whole host of funds with cash to be invested. One school of thought says that perhaps some of these funds have underperformed the market in this rally and feeling the pressure, they would like to come in but they perhaps would wait for a small 10-15% correction before they can play catch-up.
But at the same time you could be looking at funds who could be looking to take profits before the end of Christmas and that could put pressure on the markets.
Otherwise, longer-term picture, we think FII flows shouldn’t be a concern as long as US monetary policy and most of the Western central banks remains loose. The unemployment factor being the biggest driver there despite growth showing up, we think central banks will remain cautious in terms of tightening policy. So, that should keep the liquidity environment free as of now and FII flows should continue....
In reply to:
Market News and Market Update
Posted by : hsnmf
Q: How are you calling the market between now and the year-end because there seems to be a little debate on the market whether it can build on its recent gains?
Kumar: In the near term say upto the year-end, we expect the markets to remain rangebound and there are reasons for saying so.
If you look at the liquidity environment, it is quite benign right now on one side. But on the other hand there are two issues. One is valuations are somewhere above the fair value zone. And secondly we are seeing a plethora of issues hitting the market.
In fact in the last six to eight months while almost USD 15 billion of FII money has been poured into this country, almost an equal amount has also been raised through QIPs, IPOs and FPOs. So that is the reason why we would tend to believe that the markets are likely to be rangebound as far s the index is concerned.
Q: What is your perspective going into December on the market?
Gubbi: This is going to be a tricky call in the short term. From a fundamental perspective, all of us agree that valuations have stretched themselves. But we are also agreeing on the point that liquidity is excess on the global markets and we will continue to see flows.
There are two schools of thought here; we have seen a whole host of hedge funds and other funds underperforming and waiting to play catchup. For them what will be useful is a good 10-15% correction before they start buying in again.
Another school of thought is that there could be a rally before Christmas for those guys who are willing to cash-in on realized gains and book out a nice bonus before Christmas. Whichever way, it’s going to be a tricky call and fundamentally we think that the long term India story is still intact.
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Q: How are you calling the market between now and the year-end because there seems to be a little debate on the market whether it can build on its recent gains?
Kumar: In the near term say upto the year-end, we expect the markets to remain rangebound and there are reasons for saying so.
If you look at the liquidity environment, it is quite benign right now on one side. But on the other hand there are two issues. One is valuations are somewhere above the fair value zone. And secondly we are seeing a plethora of issues hitting the market.
In fact in the last six to eight months while almost USD 15 billion of FII money has been poured into this country, almost an equal amount has also been raised through QIPs, IPOs and FPOs. So that is the reason why we would tend to believe that the markets are likely to be rangebound as far s the index is concerned.
Q: What is your perspective going into December on the market?
Gubbi: This is going to be a tricky call in the short term. From a fundamental perspective, all of us agree that valuations have stretched themselves. But we are also agreeing on the point that liquidity is excess on the global markets and we will continue to see flows.
There are two schools of thought here; we have seen a whole host of hedge funds and other funds underperforming and waiting to play catchup. For them what will be useful is a good 10-15% correction before they start buying in again.
Another school of thought is that there could be a rally before Christmas for those guys who are willing to cash-in on realized gains and book out a nice bonus before Christmas. Whichever way, it’s going to be a tricky call and fundamentally we think that the long term India story is still intact.
...
In reply to:
Market News and Market Update
Posted by : hsnmf
Expert stock/sector picks in these markets
Published on Wed, Nov 25, 2009 at 20:52 | Updated at Wed, Nov 25, 2009 at 22:02 | Source : CNBC-TV18
Rahul Mohindar of viratechindia com sees the Nifty heading to 5,250-5,300 if 5,140 gets cleared. He is bullish on the banking space.
However, Manish Kumar, CIO, ICICI Prudential, expects the markets to trade rangebound till the year-end. He advises investors to invest in businesses where there is visibility of sustained earnings growth and won`t be impacted in the event of any liquidity withdrawal. "One should look at domestic plays rather than export-oriented plays more decisively."
Pramod Gubbi, Director Sales, Noble Group, NSE, is bullish on Patni Computers, On Mobile, Edelweiss, and Pantaloon. "We are looking at a few stocks which have underperformed in the recent rally, particularly the likes of Pantaloon, On Mobile, Patni Computers, and Edelweiss that are trading at a discount and have underperformed. These are the few stocks which one can play. They are backed by good management teams and one can play in the interim when it is going to be a tricky market play."
Here is a verbatim transcript of the exclusive interview with Manish Kumar, Pramod Gubbi, and Rahul Mohindar on CNBC-TV18. Also see the accompanying video.
Q: How have you read today’s trade and would you still keep on holding your longs on the Nifty?
Mohindar: I would have honestly expected a whole lot more volatility. 5,140 was a broad target that we had for an intraday trader. We hit that level and we are getting some resistance at that spot. But once we clear this 5,140 area out, it could well be a situation where we are heading even to about 5,250 or 5,300.
So, shorter term and medium term trends still points to trading the upside trajectory. My sense is that I won`t read into today’s session too much. There have not been too thick volumes and price action happenin. But yes stock specifically certainly there are a lot of ideas. Sectorally, I think banking is an interesting space to be watching into.
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Expert stock/sector picks in these markets
Published on Wed, Nov 25, 2009 at 20:52 | Updated at Wed, Nov 25, 2009 at 22:02 | Source : CNBC-TV18
Rahul Mohindar of viratechindia com sees the Nifty heading to 5,250-5,300 if 5,140 gets cleared. He is bullish on the banking space.
However, Manish Kumar, CIO, ICICI Prudential, expects the markets to trade rangebound till the year-end. He advises investors to invest in businesses where there is visibility of sustained earnings growth and won`t be impacted in the event of any liquidity withdrawal. "One should look at domestic plays rather than export-oriented plays more decisively."
Pramod Gubbi, Director Sales, Noble Group, NSE, is bullish on Patni Computers, On Mobile, Edelweiss, and Pantaloon. "We are looking at a few stocks which have underperformed in the recent rally, particularly the likes of Pantaloon, On Mobile, Patni Computers, and Edelweiss that are trading at a discount and have underperformed. These are the few stocks which one can play. They are backed by good management teams and one can play in the interim when it is going to be a tricky market play."
Here is a verbatim transcript of the exclusive interview with Manish Kumar, Pramod Gubbi, and Rahul Mohindar on CNBC-TV18. Also see the accompanying video.
Q: How have you read today’s trade and would you still keep on holding your longs on the Nifty?
Mohindar: I would have honestly expected a whole lot more volatility. 5,140 was a broad target that we had for an intraday trader. We hit that level and we are getting some resistance at that spot. But once we clear this 5,140 area out, it could well be a situation where we are heading even to about 5,250 or 5,300.
So, shorter term and medium term trends still points to trading the upside trajectory. My sense is that I won`t read into today’s session too much. There have not been too thick volumes and price action happenin. But yes stock specifically certainly there are a lot of ideas. Sectorally, I think banking is an interesting space to be watching into....
In reply to:
Market News and Market Update
Posted by : hsnmf
LATIN markets trading in Green:
MerVal 2,246.08 Down 1.79(0.08%)
Bovespa 67,787.34 Up 470.34(0.70%)
IPC 31,207.13 Up 245.14(0.79%)
Tracked by: 1 Boarder
- ITC rules out hostile takeover of East India Hotels...
In reply to:
Market News and Market Update
Posted by : hsnmf
LATIN markets trading in Green:
MerVal 2,246.08 Down 1.79(0.08%)
Bovespa 67,787.34 Up 470.34(0.70%)
IPC 31,207.13 Up 245.14(0.79%)
Tracked by: 1 Boarder
# Dollar slumps to 15-month euro low- AP ...
In reply to:
Market News and Market Update
Posted by : hsnmf
LATIN markets trading in Green:
MerVal 2,246.08 Down 1.79(0.08%)
Bovespa 67,787.34 Up 470.34(0.70%)
IPC 31,207.13 Up 245.14(0.79%)
Tracked by: 1 Boarder
Dow 10,459.64 Up 25.93 (0.25%)
Nasdaq 2,176.42 Up 7.24 (0.33%)
S&P 500 1,109.86 Up 4.21 (0.38%)...
In reply to:
Market News and Market Update
Posted by : hsnmf
LATIN markets trading in Green:
MerVal 2,246.08 Down 1.79(0.08%)
Bovespa 67,787.34 Up 470.34(0.70%)
IPC 31,207.13 Up 245.14(0.79%)
Tracked by: 1 Boarder
2:30 pm : Pressure has picked up against the dollar so that the Dollar Index is down to a new 52-week low, where it trades with a near 1.1% loss. The downturn has helped to move stocks another leg higher, though their gains remain modest.
Despite broad gains, financials continue to lag. The sector is down 0.3% and is still the only one to trade with a loss. Weakness in the sector stems primarily from banks and diversified financial services outfits. However, select insurers are looking strong; as such, shares of Aflac (AFL 45.42, +0.90) are up a solid 2.0%DJ30 +24.57 NASDAQ +6.98 SP500 +3.95 NASDAQ Adv/Vol/Dec 1339/975 mln/1298 NYSE Adv/Vol/Dec 2036/506 mln/948 ...
In reply to:
Market News and Market Update
Posted by : hsnmf
LATIN markets trading in Green:
MerVal 2,246.08 Down 1.79(0.08%)
Bovespa 67,787.34 Up 470.34(0.70%)
IPC 31,207.13 Up 245.14(0.79%)
Tracked by: 1 Boarder
LATIN markets trading in Green:
MerVal 2,246.08 Down 1.79(0.08%)
Bovespa 67,787.34 Up 470.34(0.70%)
IPC 31,207.13 Up 245.14(0.79%)...
In reply to:
Market News and Market Update
Posted by : hsnmf
Infosys, which is sitting on a cash pile of nearly $3 billion, may look at buying companies in consulting, back office, healthcare and utilities segments, Balakrishnan said.
"We look at small, niche acquisitions which will help us to penetrate certain geographies much faster, grow certain verticals much faster, grow certain services much faster," Balakrishnan said.
Earlier this month, the back-office services unit of Infosys Technologies Ltd, India`s No. 2 software exporter, said it would acquire U.S.-based McCamish Systems for an upfront payment of $38 million to boost its service offerings.
Analysts see the move as a sign that points to the M&A appetite that Indian firms are starting to show.
Last month U.S.-based Cognizant Technology, the majority of whose employees are located in India, agreed to acquire UBS India Service Centre Private Ltd for about $75 million to strengthen its position in financial services, one of its key markets.
"The Indian IT services firms are prone to pursue acquisitions to help them move up the food chain into consulting and systems integration services," Sanford C. Bernstein analyst Rod Bourgeois said.
"They`re also in need of acquisitions to gain local presence in the major countries of Europe," he said.
Infosys, which is targeting companies with revenue of about $400 million to $500 million, may acquire firms in Germany and France to expand its presence in Europe, Balakrishnan said.
DON`T FOLLOW THE CROWD
In IT services, there have been two schools of thought: the IBM model, where the company made significant acquisitions to diversify, and the Accenture model, where organic growth trumped acquisitions.
Some companies have been looking up to precedents from IBM, which bought PwC Consulting from PricewaterhouseCoopers for about $3.5 billion in 2002, and Hewlett Packard, which acquired EDS for $13 billion in 2008 in what is considered the largest-ever acquisition in the IT services space.
Accenture is widely viewed as the leading player in the space and it has never made a significant acquisition, Kaufman`s Keirstead said. "There`s plenty of data points you can point to to suggest that a model based on organic growth is in fact the winning strategy."
Companies following the IBM model are not necessarily successful, Global Equities Research analyst Trip Chowdhry said.
"The Indian strategy is good," Chowdhry said. "They don`t have to follow the crowd. They just have to make selective acquisitions if and when they make sense."
The Indian firms were being prudent, he said. "Acquisitions in IT services are human acquisitions. You`re buying people, you`re buying contracts."
(Editing by Kavita Chandran)
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